TaxTMI 
TaxTMI 
2021 (5) TMI 507
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....and absolutely based on suspicion, surmises and conjectures. 2. The Assessing Officer and Ld.CIT (A) has erred in rejecting the revised computation filled during the assessment proceedings. The additional claim in the revised return was interest paid on O. D. limit of bank utilized for business purpose. 3. The Assessing Officer and Ld.CIT (A) has erred in disallowing expenses which were exclusively for business purpose and there is no justification of the disallowance. 4. The CIT Appeal has erred in dismissing the grounds of appeal regarding the rejection of revised return. 5. It is prayed that appellant may be allowed to add further grounds of appeal at the time of hearing. It is prayed that the....
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.... Loss as per Profit & Loss Account not claimed in the original computation -7,107,012.00 Income from Capital Gain -13,674,227.00 As per Original Computation of Income Income from Other Sources -15,532.00 Net Loss to be carried forward -25,621,670.00 Capital Gain -13,674,227.00 Unabsorbed Depreciation -2,911,214.00 Carried Forward Business Loss -9,051,761.00 Exempt Income Agricultural Income -1,116,020.00 Refund Due -8,180,00 THE REASON FOR REVISED COMPUTATION: The assessee has claimed loss on account of interest paid on OD A/ c with Bank of Baroda. The detail is explained as under: The assessee had purchased a plot at 13/12, WEA, Karol B....
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....plant & machinery and interest paid after 15/10/2012 of Rs. 19,17,560 /- is allowable as business expense. The assessee was constructing building and purchasing equipments, air- conditioner, and other plant & machinery for the use of firm M/ s. Regent Grand. The funds were transferred from the OD limit in the saving account and in the firm M/s. Regent Continental for repayment of EMI of ICICi Bank Term Loan and also for purchase of assets. While finalizing the balance sheet of the firm, the payment made before 15th Oct, 2012 were taken to Capital A/ c without going into depth about the sources of capital. The interest paid on OD withdrawal on account of the assessee has been worked out and submitted to your office. The interest pai....
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....crutiny of the said OD A/ c, the total amount utilized comes to Rs. 2,84,57,000 /-for business purpose. 8. The sources of Regent Continental are from OD A/c Bank of Baroda. The same is summarized as under: 1. Transfer from OD A/ c to Regent Continental 1,68,00,000 From Regent Continental to EMI 1,65,77,211 From Regent Continental to Vendor 50,66,138 Amount refunded by Regent Grand to Regent Continental 26,05,350 2. From OD A/ c to Saving Bank A/ c 99,75,000 From Saving Bank to Construction 55,76,478 Payment to Vendors 76,74,616 The EMI of ICICI was routed through Regent Continental. It was wrongly debited to Satbir Singh Capital A/ c upto 31/03/2012. The same was transferred during the year....
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....ent that the claim made by the appellant of existence of property business is an afterthought to claim interest paid on the OD limit of bank of Baroda, which is otherwise not an admissible expense since, there is no nexus with the existing business of the appellant. * Keeping in view the above facts, the claim of the appellant that the revised computation may be taken for computation of income cannot be accepted. Further, the decision of the AO to reject it on the basis of delay in claim and the reliance on the decision of Goetze India Ltd. Vs. CIT is also upheld. 10. Culling the relevant facts, we find that the assessee has paid interest on OD limit from Bank of Baroda. The assessee has utilized OD limit jointly held with Shri ....